Justin Sun Adds Fund to USDD; Community Still Feels USDD is Unsafe

• USDD founder deployed nearly $1 million into the ailing USDD.
• Crypto community still believes USDD is unsafe since it remains below the $1 peg.
• The algorithmic stablecoin lost the $1 peg on November 9 and is yet to recover.

The Tron DAO algorithmic stablecoin USDD is yet to return to its $1 peg after slipping since November 9, 2022. Recently, Justin Sun, the Chinese founder of the Tron blockchain, deployed nearly one million dollars into the ailing USDD, assuring the crypto community that the stablecoin is in good condition with a 200% over-collateralized ratio.

However, crypto enthusiasts do not see this recent action as convincing, given that the supposed Stablecoin trades below its $1 peg. Additionally, the Stablecoin’s official tracking site, USDD.io, boosts with inaccurate figures of its collateral. The site displays that USDD has total collateral of $1,45 billion, but the actual figure is $250 million less.

Furthermore, Collin Wu, a Chinese crypto reporter, argued that $476 million of the TRX tokens in the collateral were in a burning contract and, therefore, illiquid.

According to the market tracking platform, CoinMarketCap, USDD trades at $0.978. With its current situation, the crypto community has been speculating about another monumental stablecoin de-peg, similar to the case of Terra UST.

Last month Twitter user @Lookonchain alleged that $548 million disappeared from USDD’s reserve. They showed transaction trails proving that its founder transferred $550 million from the stablecoin account to three different addresses for loan repayment.

The analyst also claimed that 99% of the TRX tokens in the USDD reserve were unavailable, implying the collateral ratio is only 50% as opposed to the 200% over-collateralized claim.